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First Quarter 2023

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Posted 2023-01-20

The Future of Money and Its Implications for Society, Central Banks, and the International Monetary System

by Eswar Prasad

This article is based on the Homer Jones Memorial Lecture delivered at the Federal Reserve Bank of St. Louis, October 19, 2022.

Posted 2023-01-20

Labor Force Exiters around Recessions: Who Are They?

by Victoria Gregory

This article identifies workers who experienced a job separation during the Great Recession or the pandemic recession and tracks their labor force status in the following year, using the Current Population Survey. Workers are classified as exiters if they leave the labor force shortly after their job loss and non-exiters if they do not.

Posted 2023-01-20

Demand-Supply Imbalance during the COVID-19 Pandemic: The Role of Fiscal Policy

by Francois de Soyres, Ana Maria Santacreu, and Henry Young

To mitigate the health and economic fallout from the COVID-19 pandemic, governments worldwide engaged in massive fiscal support programs. We show that generous fiscal support is associated with an increase in the demand for consumption goods during the pandemic, but industrial production did not adjust quickly enough to meet the sharp increase in demand.

Posted 2023-01-20

The Unequal Responses to Pandemic-Induced Schooling Shocks

by Andrea Flores and George-Levi Gayle

This article investigates the existence of socio-demographic gradients in the schooling shocks experienced by school-aged children and their ability to adjust to the disruptions induced by the containment measures imposed in response to the COVID-19 pandemic. It focuses on documenting racial, educational, and income disparities in these two essential components of children’s human capital accumulation that could have significant implications in the medium and long run.

Posted 2023-01-20

An Elementary Model of VC Financing and Growth

by Jeremy Greenwood, Pengfei Han, Hiroshi Inokuma, and Juan M. Sánchez

This article uses an endogenous growth model to study how the improvements in financing for innovative start-ups brought by venture capital (VC) affect firm innovation and growth. Partial equilibrium results show how lending contracts change as financing efficiency improves, while general equilibrium results show that better screening and development of projects by VC investors leads to higher aggregate productivity growth.